Aug 26, 2025
It’s the dream scenario: with savings secured and decades of hard work in the rearview, you walk into the office for the final time, wave goodbye and ride off to enjoy a long and restful retirement.
According to a recent survey, many Americans believe that dream should begin a few years earlier than usual.
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The survey, conducted by Empower, showed that the majority of respondents believe the average retirement age should be 58 — well ahead of the current average retirement ages of about 64 (men) and 62 (women) respectively.
And while that sounds wonderful, the same survey showed that Americans believe, on average, that a person should be debt free by the time they’re 41. The reality, however, is that Americans aged 43 to 57 carry the largest amount of debt out of any age group — almost $1.45 trillion more than the next highest age group (27 to 42).
So while it’s nice to dream about retiring at 58, exactly how realistic is it?
What you’ll need to retire at 58
Retirement looks different for everyone, so determining if you have enough money saved to retire by age 58 depends solely on your wants and needs. There are numerous online calculators to help you determine your specific retirement wealth requirements, but SmartAsset crunched some general numbers for retiring at age 58, while assuming a lifespan of 100 years.
The calculation, based on an average annual withdrawal of at least $50,000 (but likely more due to inflation) and an investment portfolio with a rate of 5% annual growth, showed that you’d need $1.34 million saved to retire at age 58.
Those with pensions, or collecting Social Security when they become eligible, will add a bit more of a cushion to that. But still, that’s just your base, day-to-day living.
As Citizens Bank notes, “It's important to determine your post-retirement spending based on your expected lifestyle.”
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“Expected lifestyle” is the key phrase here. If you intend to spend your retirement traveling or indulging in other activities that may raise costs. For example, if you plan on joining a golf or country club, spending more on entertainment and eating out, or buying that dream car you always wanted — then you’ll need to have more money put away to accommodate that.
Other considerations include the cost of health care — based on both your own health and family history. A recent Fidelity report showed that the average American retiree could spend $172,500 on health care during their retirement. Fidelity added that the number “represents a more than 4% increase over 2024 and continues the general upward trajectory” since their first report in 2002, with just $80,000 estimated.
And that 2025 estimate assumes that the retiree is 65. A 58-year-old would have to plan for another seven years on top of that, before Medicare kicks in. As well, the estimate doesn’t include the cost of long-term care.
Another consideration is where you live.
In July, GOBankingRates analyzed how much money you’d need saved to retire in each state, taking into account only basic living expenses. The discrepancy between the most expensive state (Hawaii at $2.2 million) and least expensive (West Virginia at $713,000) is stark and, again, assumes a retirement age of 65. Factors such as retiring years earlier, at 58, and the lifestyle you’d like to live in retirement, as well as your health needs will all bump those numbers higher.
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Taking a closer look at these important factors and how they affect your own retirement will go a long way to helping you decide if kicking your feet up at 58 is a reality.
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How to play catch up if you started saving late
In addition to naming 58 as their ideal retirement age, the Empower survey also gleaned that 45% of Americans wish they had begun saving for retirement sooner — which suggests that many aren’t on track to retire at 58. That’s backed up by a 2025 AARP survey that found 64% of adults over 30 worry about having enough money in retirement.
That said, there are ways to catch up and make your retirement dream a reality.
T. Rowe Price suggests focusing “less on the shortfall and more on the incremental steps you can take to rectify the situation.” That, they say, could include taking advantage of company retirement matching plans, increasing the amount of savings you regularly put aside and finding places in your budget to cut costs.
Meanwhile, try maximizing contributions to your 401(k) and opening up a Roth IRA to boost retirement savings. This is especially important for anyone already over age 50 as they can make a catch-up, according to the IRS’s annual contributions rules.
And, Citizens Bank advises investing any extra money you come into — from pay raises to bonuses to sudden windfalls like an inheritance — to help bolster retirement savings.
As well, a side hustle — be it driving for Uber part time or opening your own crafty Etsy shop, or anything in between — can also put a little extra cash in your pocket that could come in handy if you’re planning to hand in that resignation notice when you turn 58.
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Mike Crisolago is a Staff Reporter at Moneywise with more than 15 years of experience in the journalism industry as a writer, editor, content strategist and podcast host. His work has appeared in various Canadian print and digital publications including Zoomer magazine, Quill & Quire and Canadian Family, among others. He’s also served as a mentor to students in Centennial College’s journalism program.
